Baked Apple Donuts

1 1/2 c. flour
1 c. sugar, divided
1 3/4 t. baking powder
1/2 t. salt
1/2 t. nutmeg
1/2 c. shortening or margarine
1 egg, beaten
1/2 c. milk
1 cup golden delicious apples, grated
1/4 c. butter, melted
1 t. cinnamon

Sift together flour, 1/2 c. sugar, baking powder, salt and nutmeg. cut in the shortening until crumbly. Stir in the egg and milk. Fold in the grated apples.
Fill greased muffin cups one-half full. Bake at 350 degrees for 20-25 minutes. Cool slightly. Dip the tops in melted butter, then in the remaining sugar combined with cinnamon.
Serves 12.